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XRP Price Prediction: Double Bottom Forms with Bearish Threat as XRP Holds Above $3 Support
The Ripple (XRP) cryptocurrency has been experiencing a remarkable surge in recent weeks, with the price skyrocketing over 41% within the past 30 days. This rapid ascent has led to the formation of a double bottom pattern, a bullish signal that could potentially propel the digital asset even higher. However, despite this promising development, bearish pressure still poses a significant threat to XRP’s momentum.
Firstly, it is essential to understand that July has been an incredibly strong month for XRP, with the price breaking through key psychological barriers and retesting crucial levels of support. The cryptocurrency surged over 41% within the past 30 days, marking its best performance since January. This robust growth may be attributed to a combination of positive market sentiment and speculation surrounding the potential approval of a US-based spot ETF.
In the short-term, XRP’s current price action is exhibiting bearish features that could hinder any further upward momentum. The digital asset has been trading within a narrow range, unable to break above the neckline resistance at $3.334 (the July 28 high). This lack of enthusiasm from buyers may be attributed to weakening on-chain metrics, which have sparked concerns about the sustainability of this recent upswing.
Despite these doubts, XRP continues to hold above the crucial $3 support level, a development that could still yield gains if bulls manage to reclaim their footing. In this scenario, the cryptocurrency could potentially rise to test resistance at $3.33 and possibly even reach the highs around $3.7.
On the other hand, if bears successfully push XRP below the $3.05 support level, a more substantial decline toward $2.95 might ensue. Buyers would likely defend this crucial level strongly, as a breakdown below it could lead to an extended downturn towards $2.8.
In conclusion, while a double bottom pattern has formed, which is typically a bullish signal, the threat of a bearish reversal remains a significant risk. As such, traders should maintain a cautious approach and assess multiple variables before entering any new positions.
Source: coinpedia.org
